LONDON – European stocks rebounded on Wednesday morning as investors digested a new round of corporate earnings and key economic data outside the eurozone.
Asia-Pacific stocks were mostly subdued on Wednesday after a massive sell-off in the US in tech stocks, with major Chinese and Japanese markets still closed for the holidays. US futures indicate a positive open on Wall Street later today.
European stocks rebounded on Wednesday after falling sharply at the end of Tuesday’s session, with the tech sector plunging 3.8% as tech stocks around the world tumbled amid fears of high valuations and falling. reopening of economies, after severe restrictions on coronaviruses that have greatly benefited technology.
Trade activity in the euro area picked up in April, fueled by an expansion of the dominant service sector in the Union. IHS Markit’s final composite PMI (Purchasing Managers Index), a useful barometer of economic health, stands for April at 53.8 from 53.2 in March. Anything over 50 represents expansion.
It’s another busy day for corporate profits on Wednesday in Europe with Stellantis, Allianz, Commerzbank and Deutsche Post DHL Group among those reporting before the bell.
Deutsche Post raised its financial guidance after more than tripling its first-quarter operating profit, pushing the stock up 4.3% in the morning session.
Stellantis posted a rise in first-quarter revenue to 37 billion euros ($ 44.5 billion), but warned that the global semiconductor shortage could have a bigger impact on second-quarter production. The world’s fourth largest automaker saw its shares gain 3% late in the morning.
German kitchen appliance maker Rational saw shares jump more than 8% at the start of trading to lead the Stoxx 600 after its earnings report, while Vestas also gained 8% after Danish wind turbine giant reaffirmed its forecast despite an operating loss in the first quarter.
At the bottom of the index, Virgin Money UK fell 5% due to first quarter results.